Alaska Airlines and UP.Labs launch Odysee, an AI-enabled startup taking a new approach to schedule optimization

Rhea-AI Summary

Alaska Airlines and UP.Labs have launched Odysee, an AI-enabled startup focused on flight schedule optimization. Odysee, which received $5M in seed funding led by UP.Partners, uses AI and big data to optimize asset configuration for airlines and logistics operators. The platform can run hundreds of simulations within seconds to provide flight-level insights and assess schedule changes' impacts on revenue, profitability, and reliability.

This launch marks the first milestone in the partnership between Alaska Airlines and UP.Labs, announced at last year's UP.Summit. The collaboration aims to solve core strategic challenges in aviation through innovative startups. Over the next three years, they plan to launch additional companies focused on aviation and mobility challenges.

Positive

• Odysee received $5M in seed funding led by UP.Partners
• The platform can run hundreds of simulations within seconds for flight-level insights
• Odysee's technology aims to optimize asset configuration and improve operational efficiency
• The partnership plans to launch additional startups over the next three years

Negative

• None.

Insights

Technology Analyst

Odysee's AI-powered flight schedule optimization platform represents a significant advancement in airline operations technology. By leveraging artificial intelligence and big data, it addresses one of the most complex challenges in the industry: efficient asset utilization and schedule optimization.

The platform's ability to run hundreds of simulations within seconds and provide flight-level insights is a game-changer. This capability allows airlines to make more informed decisions, potentially leading to improved operational efficiency, cost savings and enhanced customer experience.

While the $5M seed funding is relatively modest for a tech startup, the backing of Alaska Airlines and UP.Partners lends credibility and provides a ready market for the product. The partnership model between an established airline and an innovation lab is an interesting approach to solving industry-specific challenges.

For Alaska Airlines (ALK), this investment could provide a competitive edge in operational efficiency. However, the true impact on the company's financials and stock performance will depend on the successful implementation and scalability of Odysee's technology across Alaska's operations.

Financial Analyst

The launch of Odysee presents an intriguing opportunity for Alaska Airlines (ALK) to potentially improve its operational efficiency and profitability. While the initial $5M investment is not material to Alaska's $5.69B market cap, the long-term implications could be significant if the technology delivers on its promises.

Optimizing flight schedules can lead to:

• Increased asset utilization
• Improved fuel efficiency
• Enhanced revenue management
• Better on-time performance

These factors directly impact an airline's bottom line. If successful, Odysee could provide Alaska with a competitive advantage in a highly competitive industry with thin profit margins.

Investors should monitor the implementation and any reported efficiency gains or cost savings in future earnings calls. While it's too early to quantify the financial impact, this initiative aligns with Alaska's focus on innovation and operational excellence, which could positively influence investor sentiment.

Odysee is an innovative, new flight schedule optimization software platform that leverages AI and big data to optimize asset configuration for the airline industry and other logistics operators

BENTONVILLE, Ark., Oct. 2, 2024 /PRNewswire/ -- One year after announcing their partnership to solve business challenges through innovation, Alaska Airlines and UP.Labs, have officially announced their first new startup, Odysee, at the UP.Summit. Odysee, which launched with $5M in seed funding led by UP.Partners, is focused on lending powerful AI and computing power to inform real-time tradeoff decisions in planning for and managing operational logistics, starting with scheduling. The platform will ensure the best use of each aircraft asset and the interconnections between them, empowering teams to more effectively optimize one of the most complex areas of an airline's business.

This AI-powered flight schedule optimization solution marks a significant milestone in the journey that began at last year's UP.Summit. Last year, the two companies announced their partnership and set a vision to solve core strategic challenges for the aviation industry with new companies that help unlock the future in transportation and mobility.

"What sets Odysee apart is its ability to help airline schedulers assess the various tradeoffs that come with certain schedule changes, allowing them to make more informed choices in building comprehensive flight schedules," says Odysee Chief Executive Officer, Steve Casley. "Our team is excited about the power and efficiency this technology will provide to Alaska Airlines and all future customers and the opportunity to continue building out its functionality."

Odysee utilizes an operations research-led approach to build flight schedules and rapidly quantify the impacts of schedule changes on revenue, profitability and reliability. The platform can run hundreds of simulations within seconds to provide accurate flight-level insights to stress-test a future schedule. This tool can assess more options and evaluate more variables than the human brain – giving teams the opportunity to make more informed decisions.

"As CEO and a former COO, I know that configuring an airline to use each airplane optimally is a key lever for operational reliability, a remarkable travel experience for our guests, and maximizing revenue," said Alaska Airlines Chief Executive Officer Ben Minicucci. "I am thrilled that Odysee, the first company launched through our partnership with UP.Labs, leverages artificial intelligence to help our teams put our airplanes in the right place, at the right time."

The partnership between UP.Labs and Alaska Airlines was established as part of Alaska Star Ventures, Alaska Airlines' investment arm and is aligned with Alaska's commitment to innovation and sustainability. Over the next three years, the partnership will launch additional startups focused on solving key challenges in aviation and mobility.

UP.Labs is a venture lab and a core part of the UP.Partners ecosystem, which also includes mobility investment fund UP.Ventures and the UP.Summit, an invite-only mobility event that brings together 300 of the world's most innovative minds rethinking the future of transportation.

"The launch of Odysee marks an exciting milestone, uniting the strengths of UP.Labs and Alaska Airlines to create a startup that revolutionizes how flight schedules are built, analyzed and optimized," says John Kuolt, Founder and CEO of UP.Labs. "By combining our expertise and shared vision, we're paving the way for new opportunities, driving growth, and setting a new standard in our industry." 

About Alaska Airlines
Alaska Air Group, Inc. is based in Seattle and comprised of subsidiaries Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air and McGee Air Services. With our recent acquisition of Hawaiian Airlines, we now serve more than 140 destinations throughout North America, Central America, Asia and across the Pacific. We are committed to safety, remarkable customer care, operational excellence, financial performance and sustainability. Alaska Airlines is a member of the oneworld Alliance. With oneworld and our additional global partners, our guests have more choices than ever to purchase, earn or redeem on alaskaair.com across 30 airlines and more than 1,000 worldwide destinations. Book travel throughout the Pacific on Hawaiian Airlines at hawaiianairlines.com. Learn more about Alaska Airlines at news.alaskaair.com and Hawaiian Airlines at newsroom.hawaiianairlines.com/blog. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

About UP.Partners
UP.Partners is Transforming the Moving World by building and investing in companies that move people and goods cleaner, faster, safer, and at lower cost — on the ground, in the air, on the sea, and in space. The multi-strategy firm achieves this goal through its unique and virtuous ecosystem encompassing UP.Ventures, UP.Labs, and UP.Summit. UP.Ventures invests in companies and technologies to enable the future of mobility, working with some of the world's most innovative investors and entrepreneurs. With flagship launch partner Porsche, UP.Labs is a first-of-its-kind venture lab, partnering with the world's largest corporations to identify the most pressing challenges that they, and broader society, face. The UP.Summit is an invitation-only experience co-hosted with Tom and Steuart Walton and Ross Perot Jr., in Bentonville, AR and Dallas/Ft. Worth, TX respectively, bringing together the world's most innovative minds to rethink the future of transportation. For more information, visit www.UP.partners or follow on Twitter @UpPartnersVC or LinkedIn.

About UP.Labs
UP.Labs is a first of its kind Venture Lab using a new venture model to solve core problems for the world's most important corporations in the mobility world. By bringing together world-class business leaders, investors and corporate partners, UP.Labs solves industry problems for corporations who have the scale and resources but cannot do it on their own. Recognizing that transportation is the underlying fabric of society, UP.Labs utilizes these strategic partnerships to rapidly ideate, build and scale disruptive startups transforming the way we move people and goods to be cleaner, faster, and safer. To learn more visit https://up.partners/labs/.

About UP.Summit
UP.Summit is an annual, invitation-only gathering of the world's most innovative minds rethinking the future of transportation. Some of the most impactful investors, entrepreneurs, and leaders in policy, defense, transportation and mobility companies gather at the summit each year with the goal of moving people and goods in cleaner, faster, safer, and at lower-cost ways - on the ground, in the air, on the sea, and in space. UP.Summit was founded in 2017 and is jointly organized by UP.Partners, Tom and Steuart Walton, and Ross Perot Jr.

 

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SOURCE ALASKA AIRLINES

FAQ

What is Odysee and how does it relate to Alaska Airlines (ALK)?

Odysee is an AI-enabled startup launched by Alaska Airlines (ALK) and UP.Labs. It focuses on flight schedule optimization using AI and big data to improve asset configuration and operational efficiency for airlines.

How much seed funding did Odysee receive and who led the investment?

Odysee received $5 million in seed funding, which was led by UP.Partners.

What are the main features of Odysee's flight schedule optimization platform?

Odysee's platform can run hundreds of simulations within seconds, provide flight-level insights, and assess the impacts of schedule changes on revenue, profitability, and reliability using AI and big data.

What are Alaska Airlines' (ALK) plans for future startups with UP.Labs?

Alaska Airlines (ALK) and UP.Labs plan to launch additional startups focused on solving key challenges in aviation and mobility over the next three years.